John Stensholt

Melbourne businessman Paul Little will establish a VIP jet base at Melbourne Airport after buying the aviation facility assets of Leighton Holdings subsidiary John Holland in a deal understood to be worth about $10 million.

The transaction, to be settled by the start of June, will then involve Mr Little's Little Aviation business spending about another $10 million over 12 months to refurbish and upgrade the existing facilities.

Mr Little said the facility at Tullamarine would attract high-net-worth and corporate customers, with some existing contracts, including jets owned by casino company Crown Resorts, to be transferred from John Holland to Little Aviation.

''We want to change the focus of the facility from what has been maintenance to one of servicing private aircraft and associated aviation businesses,'' Mr Little said.

''We think the types of people that will use the facilities are private aircraft owners through to rock groups to sporting people that come to Melbourne for the grand prix. It is the sort of world-class facility that Melbourne just doesn't have at the moment.''

The upgrade, subject to final approval from the Melbourne Airport owners, comes after John Holland announced in March that 230 airline maintenance jobs would be cut as it reduced operations, including 150 jobs at Tullamarine.

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Mr Little said Little Aviation could re-employ some John Holland staff and the group would gradually increase its workforce as operations increased in its new facility.

He said the 20-hectare site, which was originally developed by Ansett founder Reg Ansett before being sold to John Holland when Ansett collapsed in 2001, could also be redeveloped for other uses, including aviation training facilities.

''We've already had talks with several colleges who have expressed interest in using some of the site for training purposes, and we could also look to build some student accommodation there as part of it.''

Other surplus land could be used for extending or building new hangars. The facility could also include quarantine and customs operations.

The move could mean some private jet owners shifting from nearby Essendon Airport, which is owned by Mr Little's fellow Rich List members Lindsay Fox and Max Beck.

Essendon Airport users are subject to a curfew outside the hours of 6am to 10pm.

The move by Mr Little comes after his private property company Little Group made a successful $60.7 million takeover bid for the Australian Securities Exchange-listed Real Estate Corp in March.

The bulk of Mr Little's $880 million wealth is still tied to his large shareholding in listed transport and logistics group Toll Holdings, of which he was chief executive for 26 years until the end of 2011.